Tag Archives: Real estate

5 Habits of the Wealthy That Helped Them Get Rich

Why do the rich keep getting richer?

Most of the time, it’s not because of luck. It’s not because of the family they were born into. It’s not because they won the lottery.

Image Credit: Shutterstock

SEPTEMBER 9, 2015  Entrepreneur.com  BRANDON TURNER, CONTRIBUTOR Real Estate Investor and VP of Growth at BiggerPockets.com

Wealthy people simply do things differently. It may not seem fair, but the fact is the “income gap” is increasing and most financial experts only see this trend continuing with no end in sight. In preparation for this column, I sat down with someone who knows far more wealthy people than I will likely ever meet: Jeff Rose. Rose is a certified financial planner, author and blogger at GoodFinancialCents.com, as well as a millionaire himself, who dedicates a good portion of his time to helping people become, and stay, wealthy.

 5 Reasons Why You Don’t Have Money

I asked Rose why he thought the income gap was growing. He mentioned five primary things that wealthy people simply do differently than the rest of the world. Here are those five, in no particular order.

1. They take risks. Rose explains that the wealthiest people he works with routinely “throw spaghetti at the wall to see what sticks.” In other words, they try a lot of different things, knowing that a lot of it will fail. They take those risks because they know that failure is just part of the process in discovering what will truly work to build more wealth. Furthermore, as Rose explains, the rejection of those ideas invigorates the wealthy into finding what will work, a stark contrast to most of the population that simply looks at failure as a road block.

2. They invest in themselves. According to Rose, “wealthy people don’t look at the money spent on personal growth as an expense, but an investment.”  While many individuals conserve every penny equally, the wealthy understand that strategically investing in themselves will produce a far greater return than any stock, real-estate investment or business venture. Whether it’s purchasing a book, hiring a coach, joining a paid mastermind group or another source of paid self-improvement, the wealthy see this as an investment. Do you?

3. They associate with those they want to emulate. When the human body gets too hot, it produces sweat in an attempt to cool down. When it becomes too cold, it shivers to produce heat. In other words, the human body is constantly adapting to keep its temperature at the same comfortable spot. This automatic leveling is a biological process known as homeostasis and is found in numerous aspects of life. From human biology to the temperature of the earth to a car’s cruise control to the thermostat in your house, homeostasis is a fact of life that governs nearly every aspect of your existence. And, as the wealthy have discovered, homeostasis can also be a powerful way to build wealth. As Rose stated bluntly to me, “If you want to be rich, hang around rich people.” Related: 7 Lessons About Money From the World’s Richest People Or as financial TV personality Dave Ramsey often says, “if there are four broke people in a room, you’ll be the fifth.” Wealthy people have discovered that they can grow their wealth simply by associating with those who are even more wealthy. Humans pick up the habits and strategies of those in their immediate surroundings, and the wealthy have learned to use this homeostasis to their advantage.

4. They have a dedicated morning ritual. While most of the world is hitting the snooze button 14 times in a row each morning, the wealthy have already begun increasing their net worth. “Most of the multi-millionaires I know have a dedicated routine, a ritual, that they do each and every morning,” Rose says. This morning ritual could include exercise, affirmations, goal reviews, breakfast or whatever else helps them start their days with a bang. They start strong, accomplishing more before noon than more people accomplish in a week. For those struggling to get started each morning on the right foot, Rose recommends two books: The Miracle Morning by Hal Elrod The 10X Rule Daily Planner by Grant Cardone In my own life, I’ve found this truth incredibly powerful. Since instituting a morning routine, I’ve quadrupled my income, written and published a bestselling real-estate investing book, lost 10 pounds, bought my dream house and deepened my relationship with my wife. Not bad for just a few minutes each morning of dedicated routine.

5. They review their goals consistently. Finally, according to Rose, the rich have clearly defined goals and continually review them to track their progress, make changes and develop strategies for meeting those goals. This process of immediate feedback allows the wealthy to make quick changes to their plans to keep the course in a rapidly-changing world. While most of the human population gives little to no thought on their futures, the wealthy are reminded daily of where they are headed. Like a family taking a cross-country trip in their minivan, the rich have their road map spread out on the dashboard so they can navigate t

Source: 5 Habits of the Wealthy That Helped Them Get Rich  Entrepreneur.com

Real Estate Placed in a Living Trust | legalzoom.com

Real Estate Placed in a Living Trust If you are the sole owner of a piece of property, you can include that property in your living trust. You will need to change the property’s title to reflect the ownership change. If real property is transferred into a trust, there are several additional issues to consider, including the following:

Property tax reassessment: If you designate yourself as the trustee, many states, including California, will NOT require a tax reassessment when you transfer property into your trust.

Transfer taxes: Transfer taxes are normally assessed on real estate transfers. When the transfer is to a living trust, these taxes are usually not imposed. However, some states do tax living trust transfers. You should check with your County Assessor or Recorder’s Office to confirm that you will not need to make these payments.

Mortgage interest deductions: As the grantor, you can still deduct mortgage interest from your income taxes. Insurance policies: If you are the trustee, you do not need to change the registration of insurance policies if those policies cover property in the revocable trust. Tax breaks for the sale of a home: You can exclude up to $250,000 of profit from your taxable income when you sell your principal home, even if the trust owns the home . If there are co-owners, such as spouses, this exclusion is doubled to $500,000.

Homestead rights: Homestead rights, which protect a homeowner’s equity interest in his or her home, generally apply to trust property.

Due-on-sale clauses: A lender cannot enforce a due-on-sale clause if you are transferring your principal residence to your trust. If you are concerned about this, you may want to get your lender’s consent before making the transfer.

Partial interests: You can transfer a partial interest in real property to the trust (like a time share or an ownership percentage). If you’re ready to create a living trust, LegalZoom can help. Answer questions about your family and estate in our questionnaire and we’ll check your answers for consistency and completeness. We’ll assemble the paperwork you need and mail it to you, including detailed instructions for how to transfer property into your trust and how to execute all of the documents.

Source: Real Estate Placed in a Living Trust | legalzoom.com

Seller Financing: How It Works in Home Sales


Seller Financing: How It Works in Home Sales

Seller financing — when the seller gives the buyer a mortgage — can help both home buyers and sellers. Need Professional Help? Talk to a Lawyer. Zip Code: Get Started By Broderick Perkins Share on Google Plus Share on Facebook Seller financing can be a useful tool in a tight credit market. It allows sellers to move a home faster and get a sizable return on the investment. And buyers may benefit from less stringent qualifying and down payment requirements, more flexible rates, and better loan terms on a home that otherwise might be out of reach.

Sellers willing to take on the role of financier represent only a small fraction of all sellers — typically less than 10%. That’s because the deal is not without legal, financial, and logistical hurdles. But by taking the right precautions and getting professional help, sellers can reduce the inherent risks.

The Mechanics of Seller Financing In seller financing, the seller takes on the role of the lender. Instead of giving cash to the buyer, the seller extends enough credit to the buyer for the purchase price of the home, minus any down payment. The buyer and seller sign a promissory note (which contains the terms of the loan). They record a mortgage (or “deed of trust” in some states) with the local public records authority. Then the buyer pays back the loan over time, typically with interest.

These loans are often short term — for example, amortized over 30 years but with a balloon payment due in five years. The theory is that, within a few years, the home will have gained enough in value or the buyers’ financial situation will have improved enough that they can refinance with a traditional lender.

From the seller’s standpoint, the short time period is also practical — sellers can’t count on having the same life expectancy as a mortgage lending institution, nor the patience to wait around for 30 years until the loan is paid off. In addition, sellers don’t want to be exposed to the risks of extending credit longer than necessary. A seller is in the best position to offer a seller financing deal when the home is free and clear of a mortgage — that is, when the seller’s own mortgage is paid off or can, at least, be paid off using the buyer’s down payment. If the seller still has a sizable mortgage on the property, the seller’s existing lender must agree to the transaction.

In a tight credit market, risk-averse lenders are rarely willing to take on that extra risk. Types of Seller Financing Arrangements Here’s a quick look at some of the most common types of seller financing. All-inclusive mortgage. In an all-inclusive mortgage or all-inclusive trust deed (AITD), the seller carries the promissory note and mortgage for the entire balance of the home price, less any down payment. Junior mortgage. In today’s market, lenders are reluctant to finance more than 80% of a home’s value.

Sellers can potentially extend credit to buyers to make up the difference: The seller can carry a second or “junior” mortgage for the balance of the purchase price, less any down payment. In this case, the seller immediately gets the proceeds from the first mortgage from the buyer’s first mortgage lender. However, the seller’s risk in carrying a second mortgage is that he or she accepts a lower priority should the borrower default. In a foreclosure or repossession, the seller’s second, or junior, mortgage is paid only after the first mortgage lender is paid off and only if there are sufficient proceeds from the sale. Also, the bank may not agree to make a loan to someone carrying so much debt.

Land contract. Land contracts don’t pass title to the buyer, but give the buyer “equitable title,” a temporarily shared ownership. The buyer makes payments to the seller and, after the final payment, the buyer gets the deed. Lease option. The seller leases the property to the buyer for a contracted term, like an ordinary rental — except that the seller also agrees, in return for an upfront fee, to sell the property to the buyer within some specified time in the future, at agreed-upon terms (possibly including price). Some or all of the rental payments can be credited against the purchase price. Numerous variations exist on lease options.

Assumable mortgage. Assumable mortgages allow the buyer to take the seller’s place on the existing mortgage. Some FHA and VA loans, as well as conventional adjustable mortgage rate (ARM) loans, are assumable — with the bank’s approval. Getting Professional Help Both the buyer and seller will likely need an attorney or a real estate agent — perhaps both — or some other qualified professional experienced in seller financing and home transactions to write up the contract for the sale of the property, the promissory note, and any other necessary paperwork. In addition, reporting and paying taxes on a seller-financed deal can be complicated. The seller may need a financial or tax expert to provide advice and… Learn more click below

Source: Seller Financing: How It Works in Home Sales | Nolo.com

Feeling buyer burnout? Become a listing agent

Feeling buyer burnout?

Become a listing agent How and why to make the big shift happen for you

by Tim & Julie Harris

We get lots of inquiries from agents looking for a change — they’re tired of buyer leads, tired of doing the same things hoping for a different result. One of our clients, Bart, just arrived after a decade in a referral-type coaching program, and his results are starting to drop. He doubts himself, but what’s actually happening is that his training is outdated. Think about all the change in real estate over the last decade — shouldn’t your strategy have changed along with it? Wouldn’t any policy that hasn’t changed be at risk of becoming outdated?

Charles Schwab once said, “When the going gets tough, the smart leave,” so don’t assume that what you were doing yesterday will work the same way in the future. Real estate is a constantly changing business, with seasonal shifts and a rapidly fluctuating marketplace. You cannot go through your career with blinders on, being complacent, assuming that you don’t have to change and grow along with the market. Is it time for you to leave behind what used to work but no longer produces results?

One of the biggest challenges for agents these days is the belief that they can’t become a listing agent — or a perception that they’re not “ready” to take listings. This idea is perpetuated by listing agents themselves because they don’t want the competition. Another issue is simply that many agents lack the training to take listings effectively, and many brokerages lack a good “listing agent boot camp” to get them started. This is an issue we’re addressing in detail below on Real Estate Coaching Radio: Buyer burnout: When it’s time to become a listing agent.

 Why focus on listings versus buyers?

1. Think about the motivation of the client. Give me an example of a buyer who has to buy. There’s no such thing — they can always rent. One reason buyers are frustrating is because they can always back out and decide to rent for a few months if they run into any challenges. If you focus on buyers, you’re focusing on the end of the business where there is the least amount of client motivation. What about a “have to” versus a “want to” seller”? Ask yourself the question, “Is keeping the house an option?” For most sellers, it’s not. Relocating executives, divorce decrees, new children in growing families … there are lots of reasons that create “have to” sellers. When you look at seller motivation, 90 percent of the time it’s based on a “has to sell” motivation. The reason we focus on sellers — specifically “have to” sellers — is because they are motivated. As a listing agent, you must focus on “have to” sellers.

2. Listings create leverage. When you get down to it, when you have a house with the right seller, and you list that house in the MLS, it’ll sell itself. As a rule, one single listing-side transaction is almost always equal to two transactions because it puts you in contact with buyers and helps you generate spinoff business.

3. Listing agents don’t have to purchase buyer leads. When you have a listing, even if it’s not the best, you will generate buyer leads for it. You will not have to spend thousands of dollars purchasing those leads from Zillow or Trulia — they will arrive as a response to the listing you’ve already posted. 4. Being a listing agent gives you more freedom. Listing agents have regular working hours, along with more stability, more predictability and more time. You’re not running buyers around, and you’re not spending all of your time generating leads. You’re not spending all your time driving buyers around, either. You have consistent cash flow, which means you can do regular financial planning.

Learn More click below

Source: Feeling buyer burnout? Become a listing agent

Trust in your real estate broker is the foundation of home buying, selling – The Washington Post


Trust in your real estate broker is the foundation of home buying, selling  By Ilyce R. Glink and and Samuel J. Tamkin November 29, 2013

I bought a house for a bit under $2 million in Los Altos, Calif., (about average for around here). The seller and I were both represented by (different) agents from the same local branch office.

I was encouraged by my agent to bid aggressively for the house as “several disclosure packets had gone out” and the situation was supposedly very competitive.

After my offer had been presented (and accepted), I learned that in fact my bid had been the only one presented to the sellers — there were no other competing bids presented at the offer deadline.

When I pointed this out to my agents, they said their realty office would provide me $10,000 “toward closing costs,” apparently out of the goodness of their hearts. No release of liability was required. Was I lucky to get such nice real estate brokers, or should I be considering legal action? For later tax assessment purposes, is there any precedent for claiming the house sale price was actually $10,000 less than recorded, due to this agency payment?

We hate to point this out to you, but you always need to work with a real estate broker you can trust. While we don’t know if you ever considered this real estate agent’s trust in the equation of buying a home, the issue of trust is of utmost importance. Were you lucky? We don’t know. The information you received is not unlike what we hear our readers tell us when their brokers pressure them into putting in an offer on a home or increasing the amount of an offer during negotiations.

Not all brokers will pressure their clients, but certainly some do. Your letter doesn’t say that your broker told you that other buyers were bidding on the home. You were told that other buyers were given information or packages about the home. The brokers could have given you correct information, and either you took it to mean that you were competing with others, or your broker might have intended on giving you a sense of urgency to buy the home. In either case, the real question is whether the brokers did something wrong. California law tends to pioneer issues like this, and you could seek legal advice about your situation. The real estate broker has offered to pay $10,000 toward your closing costs once you brought up this issue.

You might have found a really good broker who feels bad for you and would rather keep you happy than have you feel bad about the deal. Your broker may be entirely correct. Your broker might have thought other people would come in and bid against you and thought that this home was the best home for you at the time. Whether you’re buying a home for $2 million or $200,000, the psychology of buying is the same. If you’ve been working with a reputable and good real estate agent, that agent may believe, after working with you for some time, that the home you’re bidding on is the right home for you. If that agent has a sense of what home values are in the area, he or she may also encourage you to make an offer to avoid having you walk from the deal. For many home buyers, this process works well.

The buyers end up buying the home they like and they move on to close on it. It’s possible you wound up with the right home at the right price. You might have initially bid less if you had known no one else was bidding on it, but you might have come up in the counteroffer or even lost the home if your agent didn’t push you to buy it. It’s quite hard to say where things would have ended up and how low the seller would have gone. But if the broker did nothing wrong — and perhaps the agent didn’t do anything wrong — the agent is making a fair amount from your purchase of the home. Your agent would rather that you buy the home, be happy in the purchase and make future referrals to him or her than have you feel bad about the purchase. It’s quite hard to second-guess what happened with your deal.

You’d know better as to whether the broker had dealt fairly and well with you during your entire home-buying process. If you feel that he or she was fair with you, you might give the benefit of the doubt and move on. On the other issue of the purchase price, we don’t think that the agent’s contribution toward your closing costs will adjust the purchase price one way or the other. Your lender will still consider the contract price to be the price you are paying for the home, and all of the closing documents will show the purchase price as what is stated in the contract, without regard to your agent’s contribution of $10,000 to your closing costs.

Source: Trust in your real estate broker is the foundation of home buying, selling – The Washington Post

Entrepreneur Creates New Real Estate Brand To Keep Mothers Dream Alive

chrissy's gardenSteve Schappert of Thomaston CT is launching a new kind of real estate company.  Sellers Trust Real Estate LLC is being structured as an employee owned social business enterprise.   An employee stock ownership plan (ESOP) is being developed to provide the company’s workforce with an ownership interest in the company with no upfront cost to the employees.

Schappert says, “As agents and brokers join the network our sales and more importantly our knowledge base will grow.  Every sale generates more profits that will fund more social good.”  The company’s primary focus is land conservation and affordable housing. Each and every sale will produce a donation of either money or volunteer effort.  The company will contact the conservation and housing authorities in each community they work in to identify needs.

In the early 1990’s Schappert and his mother served on the Brookfield Conservation Commission. Schappert’s mother, Christine Schappert served on the board and Schappert was the project manager for the Brookfield RiverWalk.  Schappert wrote the first grant proposal for the Riverwalk and lead a team of 45 volunteers to create a 2 mile loop.  Christine Schappert was battling cancer and before she passed was able to create the Brookfield Nature Center by working with a team of engineers to create the environmental studies that convinced the town to purchase the 16 acre parcel.   Schappert says, “The town has done a great job of maintaining the property, but Mom and I discussed plans to have educational functions there and I hope to make that a reality.”

Schappert plans to take a global leadership role in the creation and inspiration of smart growth development. Schappert says. “Demographic and economic factors are changing around the world, there is an increased demand for smaller, greener housing that has a sense of community. Fortunately I was blessed with an amazing father as well, William Schappert spent 45 years of his life drafting zoning regulations. What I have learned from Dad will help me pave the way with new regulations that  allow an evolution in the housing industry.  Sellers Trust is our sales division and simple first step.”  To learn more about how you can help call 203-994-3950

Focus Leads To Success in Real Estate

 Legendary real estate trainer, Mike Ferry released a report in August of 2014 suggesting agents pick one side of the transaction.

“I believe the skill set of an agent who works with buyers is completely different than the skill set of an agent who works on listings. Yes, they both have fundamental skills that all salespeople need … the ability to manage your time, the ability to follow up on leads, the ability to prequalify, the ability to present, etc.”

Mike Ferry went on to state:

“… The skill set of a listing agent and buyer’s agent are different from that point forward, meaning the ability to present in a fashion that causes a buyer or seller to sign a contract. … I (have thought) for years that when an agent gets their license they should have to actually declare, ‘I want to work with buyers’ or ‘I want to work with sellers.’ The majority of agents do not have the total package of skill sets to do both and, in most cases, aren’t willing to learn them because they are so vast and … if they chose one and learned it well and practiced it … they could, then, possibly in the future learn the other one.”

Real Estate coach Bernice Ross had this to say, “Sadly, the majority of agents lack the skills to do either job well. Every year hundreds of thousands of licensees fail to close a single deal. In some areas up to 80 percent of new agents fail to renew their license on their first renewal date. In fact, as early as 2001 the National Association ofRealtors was reporting that 7 percent of the agents were conducting 93 percent of the business. Even today, the best estimates indicate that 10 percent of the agents are still conducting about 90 percent of the business.” -Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, author and trainer with over 1,000 published articles and two best-selling real estate books.

Contact us right now to learn about opportunities in your area.

Steve Schappert 203-994-3950

How to Become a Great Listing Agent

HOW TO BECOME A GREAT LISTING AGENT Written by Dirk Zeller on Thursday, 29 July 2010 7:00 pm

Close More Deals – Qualify homebuyer leads fast and free When we analyze an agent’s business, we have to look at the break down of their listing transactions versus buyer transactions. Better than 90% of agents do far more on the buyer side of the business than the listing side. Once we understand and accept that fact, the question is why. I have met few agents who wouldn’t like to dramatically increase their inventory of listings.

Most agents really want to close more business on the listings side. When you compare the listing side versus the buyer side, a couple of questions come to mind. Which one is really tougher? Is it easier to find a listing prospect or a buyer prospect? For me the choice is obvious. It is far more challenging to find a listing prospect than a buyer prospect. Buyer prospects are relatively easy to find. That is why most agents work with more buyers than sellers. They often take the leads that are presented to them, and what are presented at a higher rate are buyers. Who makes the most money in your marketplace: a great listing agent or a great buyer’s agent? Who has more time off with their family? I know that the answer in both cases, when done well, is the listing agent. In the final analysis, it’s harder to become a great listing agent because it takes more skill.

There are, in fact, a series of skills that must be mastered or perfected to become a great listing agent.

1. Discipline: To be a great listing agent takes more discipline. Nothing of consequence is ever accomplished without first developing and mastering the skill of discipline. Too many agents view discipline in a negative mindset. Discipline is really a positive skill and attribute. Webster’s defines discipline in a number of ways, but here are a few of my favorites: “an activity, exercise, or regimen that develops or improves skill”, “behavior in accord with rules of conduct”, “to bring to a state of order and obedience by training and control”. All of these describe discipline as a behavior, act of will, or action. That is exactly what discipline is in sales.

To be successful as a listing agent, we must be more disciplined in our prospecting, lead follow-up, sales process, and sales skills. There will be many days that you won’t feel like doing what is necessary to create the listings you want. It will be easier to give yourself a pass for the day. Discipline is the mindset and skill that will not allow that to happen.

2. Mastery of Scripts and Dialogues: Being able to deliver compelling arguments and reasons for a prospect’s need to meet with you or list with you separates the marginal performers from the Champion Performers. You must know what to say exactly in all situations. You also need to have the correct delivery, pauses, inflections in your voice, and persistence.

When your skills are at the Champion level, it will increase your focus. It will increase your intensity in the moment of competition. Mastery skills will lead you to better preparation and, ultimately, a better attitude. With a stronger attitude of your expected success, you will be more prepared to weather the rejection that will come your way.

3. Control of Your Schedule: Maintaining your pre-determined schedule leads to more business. The prospecting and lead follow-up segment of your business is challenging enough for most agents. The vast majority of agents are trying to work those activities somewhere in their schedule only to find that, at the end of the day, they haven’t completed them; and now they are too tired to do them regularly.

The only way to consistently secure listings is to prospect consistently. The only way prospecting can be done consistently is through time management and effective scheduling. There is no other way, so stop trying to find it or invent it.

4. Hard Work: I will be the first to clearly state that becoming a great listing agent is harder work than going along with your buyer business. I have never been one to suggest that the easy path is the right path. Too often, we select the easy path hoping we can avoid the harder trails of success. You will know you are on the road to success when things become more difficult.

The road to success is uphill, not down hill. Beware of the men trying to sell you the road to success he has found that is down hill all the way. Too often, we don’t use that little voice inside us that says, “If it sounds too good to be true, it probably is too good to be true.” Expect to work harder to become a great listing agent than a buyer’s agent. The real question is, is it worth the effort? As an Agent who ran his business both ways, I will say there is no question that being a great listing Agent is worth all the investment of time, effort, energy, practice, and skill development. In the end, the time to change is now. What is your first step? What do you need

Source: How to Become a Great Listing Agent

The Mike Ferry Real Estate Sales System Week 2 – Time Management – Connecticut

Mike Ferry TV Presents…The Mike Ferry Real Estate Sales System Week 2 – Time Management

Boost Your Home’s Selling Price: 5 Pro Secrets – Connecticut

Consumer Reports’ latest survey of real estate pros reveals low-cost fixes that can raise your home’s value when you go to sell. Plus, find our recommended appliances, paints and flooring that will help you update your house for less money.